The directive, contained in a letter dated October 21, 2025, and signed by the President’s Private Secretary, Damilotun Aderemi, was addressed to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The policy, based on a proposal from the Executive Chairman of FIRS, Zacch Adedeji, seeks to align import costs with domestic market realities and promote local production.
According to Adedeji, the decision forms part of broader fiscal reforms to strengthen the naira-based oil economy, enhance price stability, and support the administration’s Renewed Hope Agenda for energy security and sustainable growth.
He explained that the initiative was designed to ensure that crude transactions are operationalised in local currency while providing a level playing field for domestic refiners.
“Our goal is twofold — to protect both consumers and domestic producers from unfair pricing practices while ensuring fair competition that attracts investment,” Adedeji stated.
Projections in the policy indicate that the 15 per cent import duty could raise the landing cost of petrol by roughly ₦99.72 per litre, putting Lagos pump prices around ₦964.72 per litre ($0.62). This figure remains significantly lower than regional averages in countries such as Senegal ($1.76/l), Côte d’Ivoire ($1.52/l), and Ghana ($1.37/l).
Government officials maintain that the policy will discourage duty-free imports that undercut local refiners, while also promoting competitiveness and fiscal responsibility in the petroleum sector.
The move comes as Nigeria continues to push for local refining dominance. The 650,000 barrels-per-day Dangote Refinery in Lagos has already begun producing diesel and aviation fuel, while modular refineries in Edo, Rivers, and Imo states are ramping up operations.
Despite these developments, imported petrol still accounts for nearly 67 per cent of domestic demand.
